Cost and Management Accounting

Abstract

The business environment has undergone a revolution ary change due to free competition and globalization. The whole world has become a global village where products and services are highly competitive and when such changes occur in the business, accounting must reflect those changes. Unfortunately, many accounting systems have yet to catch up with the manufacturing procedures that were introduced in the last decades of the 20cl’ century. Managers of companies that fail to make appropriate modifications in their accounting systems will ultimately discover they have inaccurate product cost figures and lack of data for making decisions, moreover, they may loose their competitive edge because they do not have the necessary information for operating in the new manufacturing environment. Whatever the challenges in manufacturing and the service sector, it is clear that managers need relevant, accurate and complete cost information without which they will be unable to make the important decisions they face. As a result, cost management has gained special importance in all business activities.